Rover sell-off a 'possibility', says BMW

BMW may be on the brink of disposing of its subsidiary Rover operation in the UK which has been costing it billions of dollars.

Rover sell-off a 'possibility', says BMW

14 March 2000Bob Jennings

BMW may be on the brink of disposing of its subsidiary Rover operation in the UK which has been costing it billions of dollars.

According to German reports in the newspaper Sueddeustsche Zeitung, quoting BMW Chief Executive Joachin Milberg, the sale of Rover was one possible scenario to be discussed at a board meeting tomorrow.

"The management board of BMW has for the past several months been considering several scenarios regarding how to restructure the Rover group and has kept the public regularly informed about the Rover situation. The plan as discussed in the Sueddeutsche Zeitung (to shed Rover's car production) is only one of several possibilities," BMW has replied in a statement.

The newspaper, however, said that all the necessary groundwork has been laid by BMW's management to announce the decision to sell Rover to the supervisory board.

According to the report, BMW will dispose of the Rover car operation and with it the Longbridge factory and will also sell the Rover brand name.

The paper also said that BMW would retain the profitable Land Rover and Mini models.